Is Your Credit Report Accurate?
The information in your credit report can have a significant impact on various aspects of your life, such as your ability to secure a loan, get a job, rent or buy a home, and even obtain insurance. Credit bureaus compile and sell the information in your report to businesses that use it to make decisions regarding lending, credit offers, insurance policies, and rental agreements. Some employers also consider credit reports when making hiring decisions. Therefore, it is crucial to ensure that the information in your credit report is accurate and complete. The good news is that you have the right to obtain free copies of your credit report from each of the three major credit bureaus (Experian, Equifax, and TransUnion) once every 12 months. To access your free credit reports, visit AnnualCreditReport.com.
In addition to the free annual reports, the credit bureaus have recently extended a program that allows you to check your credit report from each bureau once a week for free at AnnualCreditReport.com. Furthermore, by visiting the Equifax website or calling 1-866-349-5191, you can obtain an additional six free credit reports per year through 2026. This is in addition to the one free Equifax report (plus your Experian and TransUnion reports) available at AnnualCreditReport.com.
Checking your credit report regularly can also help you identify potential identity theft. Identity theft occurs when someone uses your personal information, such as your name, address, credit card or bank account numbers, Social Security number, or medical insurance account numbers, without your consent. The perpetrators can misuse your credit cards, open new credit accounts in your name, establish utility accounts, claim your tax refund, or even utilize your health insurance for medical services. As a result, inaccurate and fraudulent information may end up on your credit report, negatively impacting your creditworthiness, ability to obtain insurance, or even your job prospects. If you suspect that someone is using your personal information, report it immediately and develop a personalized recovery plan at IdentityTheft.gov.
What If The Information is Right…But Not Good?
Sometimes, the information in your credit history may be accurate but negative. For example, if you have a history of late payments, the credit bureaus may include this information in your credit report. However, negative information doesn’t stay on your report forever. As long as the information is correct, credit bureaus can report most negative information for up to seven years, while bankruptcy information can remain on your report for up to 10 years.
How To Correct Mistakes in Your Credit Report
Both the credit bureau and the business that provided the erroneous information are responsible for correcting any inaccuracies or incompleteness in your credit report, and they are required to do so free of charge. To correct mistakes in your report, you should contact both the credit bureau and the business that reported the inaccurate information. Here’s a step-by-step guide:
Dispute mistakes with the credit bureaus
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Dispute with each credit bureau that contains the mistake. Write a detailed letter explaining what you believe is incorrect, include the credit bureau’s dispute form (if available), attach copies of documents supporting your dispute, and keep records of everything you send. If sending your dispute by mail, use the address provided on your credit report or the credit bureau’s designated address for disputes.
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Equifax: More information about Equifax’s dispute process. Mail your letter to:
Equifax Information Services LLC
P.O. Box 740256
Atlanta, GA 30348 -
Experian: More information about Experian’s dispute process and dispute form. Mail the form with your letter to:
Experian
P.O. Box 4500
Allen, TX 75013 -
TransUnion: More information about TransUnion’s dispute process by mail and dispute form. Mail the form with your letter to:
TransUnion LLC Consumer Dispute Center
P.O. Box 2000
Chester, PA 19016
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Use a sample letter to assist you in composing your own. Make sure your letter:
- Requests the credit bureau to remove or correct the inaccurate or incomplete information.
- Includes your complete name and address.
- Clearly identifies each mistake you want to be fixed and provides a thorough explanation.
- Provides copies (not originals) of documents that support your request.
- Includes a copy of your credit report with the errors circled.
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Send your letter via certified mail and pay for a “return receipt” to obtain proof of delivery. Retain copies of all correspondence. Alternatively, you can file disputes online or by phone with the credit bureaus. Contact information is as follows:
- Experian: (888) 397-3742
- TransUnion: (800) 916-8800
- Equifax: (866) 349-5191
What happens after you dispute with a credit bureau
After receiving your dispute, the credit bureau has 30 days to investigate the reported errors. If the bureau deems your request as “frivolous” or “irrelevant,” they will cease the investigation but must notify you of their decision and provide a reason. In such cases, you may need to provide additional evidence to support your claim. The credit bureau will forward all the evidence submitted to the business that reported the information. The business is then responsible for investigating the matter and reporting the results back to the credit bureau. If the business finds that the information they reported was inaccurate, they must inform all three nationwide credit bureaus to rectify the errors in your file. The credit bureau must provide you with the investigation results in writing and, if the dispute leads to a change, furnish you with a free copy of your credit report (this does not count as your annual free credit report). Additionally, the credit bureau must send correction notices to anyone who received your credit report in the past six months upon your request. Moreover, if the report was used for employment purposes in the past two years, the credit bureau must notify those employers of any corrections made.
What if the investigation doesn’t resolve your dispute
If the investigation does not yield a satisfactory resolution, you have the right to request that a statement of the dispute be included in your file and in future reports. You can also ask the credit bureau to provide this statement to anyone who received a copy of your report in the recent past, although the bureau may charge a fee for this service.
Dispute it with the business that supplied the information
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Use a sample letter to dispute mistakes with businesses that provided inaccurate or incomplete information. Your letter should state that you are disputing errors and include:
- Your complete name and address
- Each piece of inaccurate information you want corrected, along with the reasons for your dispute
- Copies (not originals) of supporting documents
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Many businesses have specific dispute addresses. If you cannot find the address on your credit report or online, contact the business directly and ask for the correct address to send your letter.
What happens after you dispute with a business that supplied the information
If the business continues to report disputed information to a credit bureau, it must inform the bureau of your dispute. Consequently, the credit bureau has to include a notice stating that you are disputing the accuracy or completeness of the reported information. If the business concludes that the disputed information is indeed inaccurate or incomplete, it must notify the credit bureau to update or remove the information from your report.
Monitor Your Credit Reports
After disputing errors in your credit report, it is essential to review your report to verify that the credit bureau has removed the inaccurate information. If the business continues to report the disputed information, ensure that the credit bureau has included a notice indicating that you are disputing that specific information.
Report Scams
If you come across any scams, fraud, or unethical business practices, it is important to report them to the Federal Trade Commission (FTC). Report such incidents easily by visiting ReportFraud.ftc.gov, the FTC’s website dedicated to receiving consumer reports.
FAQs
Coming soon! Stay tuned for answers to commonly asked questions about disputing errors on credit reports.
Conclusion
Ensuring the accuracy of your credit report is vital for your financial well-being. By regularly checking your credit report, you can identify errors or fraudulent activity that may be affecting your creditworthiness. Follow the steps outlined in this guide to dispute any mistakes, and remember to monitor your credit reports to ensure they reflect accurate information. Your credit report plays a significant role in various aspects of your life, so it’s essential to take proactive steps to maintain its accuracy and integrity.